Proposed Changes to Executive Pay Increase Accountability
07 January 2011
The Australian reports that planned changes to executive pay may create new responsibilities for non-executive directors and expose company executives and remuneration consultants to criminal offences. The remuneration reforms reportedly include changes to allow shareholders to vote out an entire board and provisions which regulate dealings with remuneration consultants. The changes were reportedly initiated “following concerns companies were claiming they took advice from independent expert remuneration advisers, but shareholders had no way to ascertain who the adviser was, who appointed them, who they reported to and whether they were truly independent”.
The Australian: Executive pay reforms ‘too onerous’, say critics (4 January 2011)
(Source: The Australian)